Performance Appraisal

Summary

This video discusses the challenges of performance appraisals, highlighting that 65% of employees and 95% of HR managers are dissatisfied with the process. It identifies common errors in performance ratings—central tendency, halo, and leniency—and suggests that organizations can reduce these by using objective performance measures and providing rater training. The video emphasizes the importance of delivering feedback effectively, advocating for a focus on strengths rather than solely on weaknesses. Additionally, it introduces 360-degree feedback as a way to enhance credibility and accuracy in performance evaluations, fostering a more constructive appraisal environment.

Takeaways

• 😀 Performance appraisal assesses employee job performance but is often disliked by both employees and managers.
• 😞 65% of employees and 95% of HR managers are dissatisfied with their organization's performance appraisal processes.
• 📊 Performance appraisals serve four main purposes: administrative decisions, employee development feedback, evaluating HR programs, and documentation.
• ⚠️ Common rating errors include central tendency, halo effect, and leniency, often due to insufficient data gathering.
• 🤝 Facebook reduces appraisal errors by having managers collaborate on final performance ratings.
• 🔍 To improve appraisal accuracy, companies can enhance performance measures and train raters effectively.
• 📈 Objective performance measures (e.g., sales, waste) are preferred, but subjective measures are sometimes necessary.
• 🎓 Frame of reference training is an effective method for training raters to improve appraisal accuracy.
• 🗣️ Feedback is crucial but often problematic; both employees and managers may feel defensive during the process.
• 🌟 Companies encourage managers to focus on employee strengths and minimize harsh feedback to improve receptiveness.

Q & A

What is the primary purpose of performance appraisals?

The primary purpose of performance appraisals is to assess how well employees are doing in their jobs, facilitating administrative decisions, providing feedback for employee development, evaluating human resource programs, and maintaining documentation.

Why do many employees and managers dislike the performance appraisal process?

Many employees and managers dislike the performance appraisal process due to its complexity and the discomfort associated with providing and receiving feedback. Studies show that 65% of employees and 95% of HR managers are dissatisfied with their appraisal systems.

What are the four broad purposes of performance appraisals?

The four broad purposes of performance appraisals are making administrative decisions, providing feedback for employee development, evaluating human resource programs, and serving documentation purposes.

What are some common errors made during performance evaluations?

Common errors include central tendency error (rating all workers as average), halo error (rating all workers the same across different job aspects), and leniency error (rating all workers as performing exceptionally well).

How can organizations reduce errors in performance appraisals?

Organizations can reduce errors by having managers collaborate on finalizing performance ratings and using objective performance measures whenever possible.

What is frame-of-reference training?

Frame-of-reference training involves trainees watching a video of an employee at work, evaluating their performance, and comparing their assessments with those of an expert, helping to minimize evaluation differences.

What challenges arise when providing feedback during performance appraisals?

Challenges include employees becoming defensive in response to negative feedback, as well as managers feeling uncomfortable delivering that feedback, which can lead to ineffective communication.

What approach is recommended to improve the feedback process?

To improve the feedback process, managers are encouraged to focus on employees' strengths and be mindful of not being overly critical, which can help reduce defensiveness.

What is 360-degree feedback and how does it improve the appraisal process?

360-degree feedback is an approach where feedback comes from multiple sources, including the boss, subordinates, peers, and the employees themselves. This method improves credibility and provides a more comprehensive view of performance.

What types of performance measures can organizations use?

Organizations can use objective performance measures, such as output, sales, scrap rates, and customer complaints, which are easily quantifiable. When objective measures are unavailable, subjective measures are used, requiring assessments by individuals.